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The Federal Direct Grad PLUS Loan is for graduate and professional students enrolled
at least half-time in a master's or professional degree program, and who wish to borrow
beyond their annual aggregate Federal Stafford loan limits. Students must meet credit
eligibility requirements. Students with an adverse credit history, may receive a Federal
Direct Grad PLUS Loan if they obtain an endorser who does not have an adverse credit
history.

Enrollment Requirements

Students must be continuously enrolled in at least four (4) units (half-time enrollment)
each semester as a graduate student to receive the loan. If units drop below half-time
enrollment at any time during the loan period, and/or if the student has not received
satisfactory grades for the minimum number of units required, he/she may not be eligible
for the loan proceeds the subsequent semester.

2014-15 Interest Rate - 7.21%

2013-14 Interest Rate - 6.41%

The Direct Loan interest rates for loans first disbursed between July 1, 2013 and
June 30, 2014 are fixed. Under the new interest rate structure, all Direct Loans,
except Direct Consolidation loans, will be "variable-fixed," meaning students would
receive a new rate with each new loan, but then that rate would be fixed for the life
of the loan. There is also an interest rate cap at 10.50% for graduate PLUS loan.

The interest rates are calculated using a base 10-year Treasury Note Index of 1.81%
plus an add-on amount for each loan program - 4.60% for graduate PLUS loan.

Deadline to Apply

December 6, for one-term enrollment (fall only)

May 1, for academic year (Aug-May), and one-term enrollment (spring only)

Repayment Information

The first payment of principal and interest on a Grad PLUS Loan is due sixty (60)
days after the loan has been fully disbursed. Delayed Repayment Option: If requested, repayment can be delayed until six months after units drop below half-time
or upon graduating. You must request this option by contacting your direct loan servicer.

Disbursement of Funds

Disbursement of funds begins the first week of the semester and continues on a weekly
basis. Academic year Grad PLUS loans are disbursed to student's account in two equal
installments usually at the beginning of each semester. Financial Aid funds are applied
towards any current outstanding debt owed to the university (i.e., tuition, fees,
etc.). Remaining funds, if any, are refunded to the student by the Bursar's Office.
View the Bursar's Office website for more information on the refund process.

Loan Application Process

Step 1: Student must have completed FAFSA, submitted requested documents, and have a Financial
Aid award. Please do not apply for a Grad PLUS Loan prior to being awarded.

Step 2: Submit Direct Grad PLUS loan application to the Financial Aid and Scholarship Office
(FASO). Applications can be downloaded by clicking the FORMS link on the FASO home page.

Step 3: Once the Direct Grad PLUS Loan application is received, information is forwarded
electronically to the Direct Loan Processor for a credit check approval. FASO will
receive an electronic notice of approval or denial from the U.S. Dept. of Education.

Step 4: FASO will electronically certify a student's loan eligibility and the amount they
may borrow based on their financial aid award.

Step 5: FASO will send a message via my.sjsu.edu that directs students on-line to sign the
Master Promissory Note (MPN), if required.

Exit Loan Counseling

Students must complete Exit Loan Counseling within sixty (60) days of the last date
of attendance at SJSU.